The nexus between digital financial knowledge and financial inclusion: digital financial attitudes and behaviour as mediators enhancing financial inclusion
International Journal of Bank Marketing
ISSN: 0265-2323
Article publication date: 22 October 2024
Issue publication date: 20 January 2025
Abstract
Purpose
The purpose of this study is to measure financial inclusion (FI) and to examine the role of digital financial literacy (DFL) and its components, and various socio-demographics in relation to FI. In addition, the mediating effect of digital financial attitudes (DFA) on the relationship between digital financial knowledge (DFK) and digital financial behaviour (DFB), as well mediating effect of DFA and DFB on the relationship between DFK and FI, is being explored.
Design/methodology/approach
Using a cross-sectional research design, we utilize a dataset from the survey of adults’ financial literacy in Bosnia and Herzegovina, collected from the representative sample of 1,096 adults in 2022. The main methodology relies on logistic and ordinal logistic regression analyses and PROCESS for mediation analyses.
Findings
The findings suggest that the effect of DFK on DFB is partially mediated by DFA. In addition, the effect of DFK on FI is fully mediated through three pathways: DFA, DFB, and DFA and DFB in serial mediation. Age, education, employment status and residence are significantly related to FI. Internet access is significant only for FI scores but not for adults’ banking status. Although women are almost twice as unbanked as men, we find no gender-based differences in financial product holdings, FI or adults’ banking status.
Practical implications
There is a need to enhance DFK and DFA to enable adults to use financial products. Financial institutions could use our results in designing and promoting their services.
Social implications
Policy implications are seen in the need for developing national strategies for financial education, with an emphasis on strengthening DFL, especially DFK and DFA, which will enhance the formal FI of adults. Also, governments should work on expanding Internet access.
Originality/value
The results make a contribution to the theory of planned behaviour. They contribute to the limited empirical evidence of the mediating role of DFA in relationship to DFB, as well as the mediating role of DFA and DFB in relationship to FI.
Keywords
Acknowledgements
The authors would like to thank the editors and anonymous reviewers for their insightful comments and suggestions, which helped improve this paper. They also extend their gratitude to the Ministry of Science, Higher Education, and Youth of Sarajevo Canton, Bosnia and Herzegovina, for co-financing the project “Financial Literacy in Bosnia and Herzegovina”, and to Professor Maja Arslanagic-Kalajdzic, head of the Center for Research and Development at the University of Sarajevo and colleague, for her support and the many scientific discussions.
Citation
Zaimovic, A., Omanovic, A., Nuhic Meskovic, M., Arnaut-Berilo, A., Zaimovic, T., Dedovic, L. and Torlakovic, A. (2025), "The nexus between digital financial knowledge and financial inclusion: digital financial attitudes and behaviour as mediators enhancing financial inclusion", International Journal of Bank Marketing, Vol. 43 No. 2, pp. 388-423. https://doi.org/10.1108/IJBM-01-2024-0053
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited